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Investors Dump Stocks as Sentiment Shifts towards Less Risky Assets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jan 22, 2010.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    Investors dumped stocks late in the trading session on Friday as sentiment shifted toward less risky assets. The combination of a stronger Dollar, monetary tightening in China and a proposal by Obama to end financial institution prop trading weighed heavily on traders this week.

    Demand for safety helped to lower yields and boost the March Treasury Bonds and Treasury Notes this week. This bodes well for the next auction because it looks as if the Treasury will be able to offer lower yields. .

    February Gold finished the week sharply lower as traders dumped commodities because of the weaker Dollar. News that China was beginning to shift toward a tighter monetary policy means less demand for precious and industrial metals. Furthermore, a slow down in demand will mean lower inflation which lessens the need for gold as a hedge.

    Read full article at full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

    Disclaimer: Trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.
     
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